Replies to post #120609 on Zeev's Turnips Patch-No Politics (ZEEV)

[market_watcher]

AJ,

Who's to say that 401K plans will continue to exist? Although people loved them during the 90's, a few articles have come out critically on the role of these plans in the bubble. Defined-benefit plans could make a comeback as the bear market grinds on.

[Joe Stocks]

>>I don't think we'll see a 9 P/E on the S&P. The advent of the 401K almost assures it won't happen.<<

Interesting point. It may not happen soon, but, the 401k and all those IRA could eventually give us those low PE's. A problem down the road is that these plans require one to sell holdings at some point. This allows the government to finally collect it's taxes. When the boomers start unloading in mass, it could create a problem.

That said, I think we hit those low PE's well before as our economy starts to crumble.